Cogeco Communications (CCA) 29th Annual Scotiabank TMT Conference summary

Strategic transformation and growth objectives

• Transitioning from a traditional regional cable operator to a digital challenger with four new business lines, including recent U.S. and Canadian wireless launches and digital brands oxio and welo.

• Top priorities for 2026 include growing all four business lines, executing a three-year transformation focused on cost reduction and revenue management, and achieving CAD 600 million in cash flow by September 2026.

• After dividends, CAD 400 million in annual capital is available for deleveraging or buybacks, representing a significant portion of market cap and expected to continue for years.

U.S. and Canadian market performance

• U.S. business aims to stabilize customer trends and offset ARPU erosion with cost-cutting, targeting improved EBITDA and cash generation as CapEx declines.

• In Canada, EBITDA and cash flow are growing as CapEx and financing costs decrease, with leverage targeted to fall to 3x EBITDA by fiscal year-end.

• Capital allocation priorities include further deleveraging, potential buybacks, and maintaining a high-yield dividend.

Brand strategy and competitive positioning

• Launch of second brands (oxio in Canada, welo in the U.S.) is expected to expand market reach with minimal cannibalization due to distinct brand positioning.

• U.S. market share growth is targeted in regions where current share is below 20%, with new brands expected to attract customers from FWA and other cable/wireline peers.

• Canadian market remains competitive but stable, with recent resell activity in Quebec subsiding and constructive competitor behavior observed.